Project Syndicate - China's bad debtor
Friday, March 19, 2010
China's foreign-exchange reserves, indeed, are facing a triple whammy: a decline in the US dollar's purchasing power, a fall in the prices of US government securities, and possible inflation in the longer run.
The bulk of China's $2.3 trillion in foreign reserves are held not for the purpose of protection against negative external shocks, but as savings in the form of US Treasury notes. China thus needs to preserve the value of its savings.
But there is no question whatsoever that the US dollar will go south in the long run - a depreciation that started in April 2002 and, after a short interval, resumed in March 2009. Unless the US economy improves its trade balance, the dollar will fall. But the US cannot improve its trade balance unless the dollar falls.
The contest had 10 beautiful young girls as finalists and unfortunately only one could wear the crown.The judges picked Anicia Gaothuse. To all those who feel their contestant should have won ahead of Anicia for whatever reason, hardly; the judges found Anicia to be the best among the best, so desist from disrespecting our newly crowned queen on social media or anywhere else, for that matter! Each of the 10 beautiful young women had supporters...